Compulsory disclosure of private information theoretical and experimental results for the "acquiring-a-company" game

Werner Güth (), Kerstin Pull, Manfred Stadler and Alexandra Zaby

No 69, University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics

Abstract: Based on the acquiring-a-company game of Samuelson and Bazerman (1985), we theoretically and experimentally analyze the acquisition of a firm. Thereby we compare cases of symmetrically and asymmetrically informed buyers and sellers. This setting allows us to predict and test the effects of information disclosure as prescribed by two recently implemented directives of the European Union, the Transparency and the Takeover-Bid Directive. Our theoretical and experimental results suggest a welfare-enhancing effect of compulsory information disclosure. Hence, the EU Transparency and the EU Takeover-Bid Directive should both be welfare enhancing.

Keywords: acquisition of firms; disclosure of private information; experimental economics (search for similar items in EconPapers)
JEL-codes: C91 D61 D82 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-bec, nep-com, nep-cta, nep-eur, nep-exp and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/92463/1/778291146.pdf (application/pdf)

Related works:
Journal Article: Compulsory Disclosure of Private Information: Theoretical and Experimental Results for the Acquiring-a-Company Game (2019)
Working Paper: Compulsory Disclosure of Private Information Theoretical and Experimental Results for the "Acquiring-a-Company" Game (2014)
Working Paper: Compulsory Disclosure of Private Information - Theoretical and Experimental Results for the Acquiring-a-Company Game (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuewef:69

Access Statistics for this paper

More papers in University of Tübingen Working Papers in Business and Economics from University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().